Items 5 to 7 are based on the following information. On January 1, 2020, Sykunno Company issued P5,000,000 of 12% nonconvertible bonds payable at 103 which are due on December 31, 2024. In addition, each P1,000 bond was issued with 30 detachable share warrants, each of which entitle the bond holder to purchase for P50, one ordinary share of Sykunno Company, par value P25. On January 1, 2020, the quoted market value of each warrant was P4. The market value of the bonds, ex-warrant at the time of issuance is 95.

Items 5 to 7 are based on the following information. On January 1, 2020, Sykunno Company issued P5,000,000 of 12% nonconvertible bonds payable at 103 which are due on December 31, 2024. In addition, each P1,000 bond was issued with 30 detachable share warrants, each of which entitle the bond holder to purchase for P50, one ordinary share of Sykunno Company, par value P25. On January 1, 2020, the quoted market value of each warrant was P4. The market value of the bonds, ex-warrant at the time of issuance is 95.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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